Kingdom of Swaziland: Selected Issues and Statistical Appendix
IMF Staff Country Reports, October 30, 2008
Source details
- Canonical URL
- Kingdom of Swaziland: Selected Issues and Statistical Appendix
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Bibliographic details
- Published: October 30, 2008
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451836158.002
Summary and purpose
- This Selected Issues paper and Statistical Appendix for the Kingdom of Swaziland assesses the interaction of nonbank financial institutions (NBFIs) within the financial system and the real economy.
- Understanding the type of flows will help in designing policies to better manage capital flows and allow higher interest rate; and more attractive domestic investment opportunities could reduce outflows.
- The current global financial crisis provides useful lessons on the importance of an efficient regulatory and supervisory framework.
- However, regulation should be in line with economic structures and the stage of economic development.
Key findings and analytical focus
- Interaction of nonbank financial institutions (NBFIs) with the financial system and real economy is the central analytical focus.
- Flow analysis is highlighted as essential to:
- design policies to better manage capital flows;
- allow higher interest rate; and
- create more attractive domestic investment opportunities to reduce outflows.
- The experience of the current global financial crisis underlines the importance of an efficient regulatory and supervisory framework, with the caveat that regulation should be aligned with economic structures and development stage.
Policy implications and recommendations (implicit in summary)
- Design policy measures that manage capital flows informed by detailed mapping of NBFI-related flows.
- Enable conditions for higher interest rates where appropriate, consistent with broader macroeconomic and financial stability goals.
- Promote domestic investment opportunities to reduce capital outflows.
- Strengthen regulatory and supervisory frameworks, ensuring they are proportionate to the Kingdom’s economic structure and stage of development.
Subject classification and keywords
- Subject: Banking, Commercial banks, Cooperative banks, Expenditure, Financial institutions, Insurance companies, Nonbank financial institutions, Pension spending
- Keywords: Africa, asset, asset requirement, assets of bank, assets of pension funds, banking system, Commercial banks, Cooperative banks, CR, financial market development, Insurance companies, ISCR, market, market capitalisation, NBFI sector, Nonbank financial institutions, Pension spending, Swaziland, total assets, venture capital